Seed Treatment Market Size, Share & Industry Analysis, By Type (Synthetic Chemicals, Biologicals), By Function (Seed Protection, Seed Enhancement), By Application Technique (Seed Coating, Seed Dressing, Seed Pelleting), By Stage of Seed (On-Farm, Off-Farm), By Crop Type (Cereals, Oilseeds, Fruits and Vegetables, and Others), and Regional Forecast, 2024-2032

The global seed treatment market size was valued at USD 13.38 billion in 2023 and is projected to grow from USD 15.11 billion in 2024 to USD 38.88 billion by 2032, exhibiting a CAGR of 12.54% during the forecast period. North America dominated the seed treatment market with a market share of 34.6% in 2023.

Seed treatment, a novel and recent concept in agricultural inputs, has transformed the agricultural industry from a single product paradigm to a systemic approach that addresses multiple challenges affecting crop yield and quality. The growth potential of the treated seeds remains promising in the matured markets of developed economies that are transitioning toward adequate, sustainable, and systemic products. Moreover, the future growth of the global market is expected to emerge from the development of novel solutions that are not only effective and economical but also assist in enhancing the sustainability of crop production.

According to the National Bank for Agriculture and Rural Development (NABARD), agricultural production in India declined by -2.7% due to the outbreak of the COVID-19 pandemic in 2020. Moreover, due to restrictions imposed on transportation and the closure of shops, the availability of agri inputs such as seeds, fertilizers, pesticides, fodder, and others declined in the range of 9% to 11%. The global COVID-19 pandemic has been unprecedented and staggering, with seed treatment products experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. 

Seed Treatment Market Trends

Incorporation of Innovative Technologies to Replace Manual Involvement

The focus of most agricultural policymakers is on organic and related integrated farming systems. This route to sustainability generally ignores the needs of conventional farming systems on the most fertile agricultural land. However, there has been analysis regarding the effects of national and international policy environments on innovation strategies of companies developing products in the areas of pesticides such as insecticide fungicides, biotechnology, and seeds, which could potentially reduce the environmental impact of all farming systems.

The improper management of diseases and pests leads to heavy losses in agricultural and horticultural production. Plant breeding is one of the excellent tools that help to build resistance against pests and diseases in plants. However, plant breeding alone does not address all of the agronomic challenges. Hence, crop protection chemicals are often used for good crop management.

Integrated Pest Management (IPM) is a broad-based approach that incorporates a range of practices for the economic control of pests. It includes controlling insects, plant pathogens, and weeds. Moreover, today, the technology is gaining traction on farms around the world. IPM can reduce cost and pesticide residue by limiting pest populations and increasing crop yields. Synthetic insecticides have adverse effects on the environment. However, IPM promotes non-chemical approaches and pesticides.

Growth Factors

Escalating Need to Increase the Crop Yield owing to Increased Spending on Food

A robust increase in agricultural production primarily fuels the global industry. According to the Government of India, the agriculture sector accounts for 18.8 % of the Country's Gross Value Added (GVA) in 2021-22 and has experienced flexible growth in the past two years. It grew at 3.9% in 2021-22 and 3.6% in 2020-21. The significant increase in agricultural production can be attributed to the introduction of new technologies, product innovations, and process enhancements in the farm sector.

Treating the seeds with synthetic chemicals or biologicals ensures that the yield remains promising and productive, with the establishment of healthy crops becoming more sustainable. The farming practices, independent of their approaches (traditional or organic), have made treating the seeds an intrinsic part, and nearly all commercial agricultural seed manufactured undergoes some form of treatment with chemical or biological solutions such as insecticides or biofungicides.

The modern seed treatment consists of novel active substances and formulations, which provide long-lasting and broad-spectrum control of pests and diseases. Further, these new seed treatment products are precisely blended and consists of several active ingredients, different wetting agents, colorants, and sometimes bird repellents, which are strictly tested for their safety to the seed, grower, and the environment. Thus, the modern seed treatments are safe for the growers and the environment in addition to their targeted pest control approach. Thus, these products are expected to meet efficacy, safety, and environmental standards.

The market thus assumes greater significance amidst unsustainable conventional agricultural practices, future climate scenarios, and limited natural resources.

Enabling Policy and Regulatory Framework to Reduce the Disease and Enhance Productivity

The global seed treatment market growth is fueled by the public sector's supporting agricultural policies and efforts to make agriculture more remunerative. Governments and regulatory authorities around the globe have concretized their efforts toward their agrarian sector, which is already heavily subsidized in some agri-dependent emerging markets. The governments of different developed and developing economies have realized the importance of treating seeds to ensure optimum crop emergence. As opposed to the foliar application of other conventional inputs, treating the seeds with synthetic or biological solutions is a well-targeted method for reducing the disease and enhancing the yield.

RESTRAINING FACTORS

Low Awareness and Modern Technological Challenges Hinder the Market Growth

The major restraint for the market growth is its sub-optimal utilization in countries where it can play a pivotal role in overall yield enhancement and crop protection. Farmers in many developing countries are unaware of different aspects of treating the seeds. Modern agricultural challenges demand innovative solutions from eco-friendly inputs to protect and improve commodities. Moreover, producers must exercise greater caution about not mixing the biologicals with the products, drastically reducing the effectiveness of such solutions. The dominance of traditional crop protection methods and their wider availability among cultivators crowd out the novel treated seeds released in the marketplace.

Seed Treatment Market Segmentation Analysis

By Type Analysis

Synthetic Chemicals Hold the Largest Market Share owing to the High Cost of GMO Seeds

Based on type, the market is segmented into synthetic chemicals and biologicals.

Synthetic chemicals segment is expected to witness a strong sales performance over biological treatment as it takes less time to control plant diseases and pests. Several automatic treatment machineries with high accuracy are available, making them less labor-intensive. Synthetic chemicals are fungicides or insecticides applied to seeds to control seeds and seedlings from diseases. The high cost of genetically modified seeds is a significant factor in the demand for and growth of chemical treatments. Plants grown from seeds treated with resistance-inducing chemicals like salicylic acid, jasmonic acid, and others exhibit long-lasting effects on protection across the different developmental stages of crops.

The biological treatment segment is projected to exhibit substantial growth as these treatments are made up of renewable resources that contain naturally occurring active ingredients that protect against soil-borne pathogens, improve abiotic stress, and increase plant growth.

By Function Analysis

Seed Protection to Hold Significant Share owing to Competitive Cost and Reduced Application Efforts

The function segment includes seed protection and seed enhancement. The seed protection segment is anticipated to witness the fastest growth as it provides a complete protection solution against various plant stressors in a single product that is grower-friendly, crop-friendly, and environmentally responsible. Moreover, compared to conventional crop protection products, seed protection treatments offer competitive costs, reduce application efforts, and save time.

The growing popularity of physical seed enhancements is an alternative approach to other chemical treatments, which provide a better solution for the seed market and are expected to positively impact the market's growth. Magnetic field treatments are considered practical seed enhancement tools for horticultural crops; however, their application is limited to large scale. Among physical methods, magnetic field and ionizing radiations are the most favorable pre-sowing seed treatments.

By Application Technique Analysis

Early Protection of Crop from Foliar Infection drives the Seed Dressing Sector

Based on application technique, the market is segmented into seed coating, seed dressing, and seed pelleting.

Seed dressing is the fastest growing segment, allowing the seed to germinate quicker than non-treated seeds. Seed dressings promote early relations with beneficial soil microorganisms, such as mycorrhizae, which help nutrient absorption. It controls seed infection and protects the crop from foliar infection, thereby reducing the disease pressure later in the season, making in-crop fungicides more effective, and reducing potential loss of yield and quality during grain fill.

Seed coating is anticipated to hold a significant share in the global market. Rising incidences of seed diseases that undesirably affect the overall crop growth and health are leading to aggregate demand for seed coating ingredients to safeguard them from the attack of pests and other harmful microorganisms in the soil environment.

By Stage of Seed Analysis

Increasing Tolerance to Abiotic Stress Boosts the On-Farm Treatment Utilization

The stage of the seed segment comprises on-farm and off-farm. In off-farm treatment, the easy availability of seeds to the farmers and the manually mixing of pesticides saves time. Along with this, using already treated seeds help in fueling agricultural productivity.

The on-farm segment is witnessing significant demand across the global market owing to an effective approach to alleviate adverse seedbed conditions such as soil crusting and limited soil moisture. On-farm treatment offers more substantial photosynthetic potential to plants tolerant to abiotic stresses.

By Crop Type Analysis

Cereals to Exhibit Significant Proportion in the Global Market due to its Rising Application in Food Industry

Based on crop type, the market is segmented into cereals, oilseeds, fruits & vegetables, and others. Cereals segment is expected to hold the largest share in the market owing to the government's strong focus on food security from developing markets. Moreover, the demand for cereals is rising as they have a wide range of applications in the food industry.

Oilseeds are gaining significant traction in recent years as urbanization increases in developing countries, dietary habits and traditional meal patterns are expected to shift toward processed foods, which increases the demand for vegetable oils. According to the OECD-FAO Agricultural Outlook 2021-2030, India is expected to uphold a high per capita vegetable oil consumption growth of 2.6% per year, reaching 14 kg per capita by 2030, necessitating a high import growth of 3.4% per year.

REGIONAL INSIGHTS

The market is categorized into North America, Europe, Asia Pacific, South America, and the Middle East & Africa in terms of geography.

North America holds the largest share in the global market, which stood at USD 3.56 billion in 2021. It is primarily driven by favorable agro-economic conditions, homogeneity in terms of intensification level and farmer profile, and a wide range of agro-climatic zones and crops. The U.S. and Canadian marketplaces seek to address the mounting challenge of optimizing natural resources and managing increasing labor costs. Treated seeds are poised to contribute to the efforts to address the challenges as mentioned earlier due to its high productivity while reducing the use of agrochemicals.

The regional market for treated seeds in Europe is mainly driven by its robust demand, especially in Western Europe, which exhibits a proportionally high level of agrochemical usage as compared to the plantation area. Seeds treated with solutions are predicted to contribute to resistance management and ease operational complexity. Central and Eastern Europe have high intensification potential as these regions lack technological interventions, which is further aggravated by irregular weather patterns and natural constraints.

The Asia Pacific market is expected to showcase the fastest growth rate compared to the global average. The production scenario for staples such as wheat and rice remains favorable in the region. The seeds treated with pesticides are utilized to increase the productivity of such major crops, even in marginal land with low agricultural inputs. Moreover, the dominance of chemical insecticides and pesticides in the region warrants biological-based treatment with a reduced risk of exceeding minimum residue levels. The region is also expected to contribute considerably to the global organic agriculture sector. The agricultural sector remains essential to individuals' livelihoods and global economic stability. Demand and consumption of crops for food, feed, and fuel are proliferating, resulting in the surging need for increased crop yields. Moreover, the emergence of biodegradable seed coatings is expected to offer significant growth opportunities for players in this market.

The demand for seed-treated solutions is increasing in Brazil and Argentina in South America. Soybeans, corn, rice, beans, and sorghums are some commodities whose seeds are increasingly being treated with blends of chemical and biological solutions, owing to their wider acceptance in the region. The chemicals segment offers early season control, while microbial treatment exhibits extended control as it colonizes the developing roots. Moreover, the on-farm segment is expected to grow faster during the upcoming years owing to biological viability and stability factors.  

The demand for treated seed in the Middle East & Africa is anticipated to grow significantly. Increased tolerance to both biotic and abiotic stresses makes the seed protection segment popular in the region. It is not only the dominating functionality associated with the treated seeds but also it is expected to exhibit faster growth in the upcoming years. Insecticides followed by fungicides are broadly utilized, with seed dressing being the most common method.

List of Key Companies in Seed Treatment Market

Syngenta AG is Focused on Portfolio Expansion by Increasing its Product Launches

Syngenta AG is one of the major players with a huge clientele base, serving its products across the globe. The company is focused on new product innovation and expanding its market base to strengthen its market presence. For instance, in March 2021, Syngenta introduced a new corn seed treatment product, Vayantis fungicide. The product contains the active ingredient picarbutrazox, a fungicide developed to protect seedlings from key blight and damping-off diseases. This new product launch will help farmers combat Pythium and increase crop yields.

Other key players, such as BASF SE, Bayer AG, and UPL Ltd. are focusing on strategic mergers, acquisitions, and partnerships to gain a further competitive landscape from such collaborations. The entrance of niche players in the market contributes to intensifying competition, which positively impacts the market's growth. 

LIST OF KEY COMPANIES PROFILED:

• Syngenta AG (Switzerland)


• BASF SE (Germany)


• Bayer AG (Germany)


• UPL ltd. (India)


• Corteva Agriscience (U.S.)


• NuFarm Ltd. (Australia)


• FMC Corporation (U.S.)


• Sumitomo Chemical Co. Ltd. (Japan)


• Croda Int. PLC (U.K.)


• Germain's Seed Technology, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• August 2022 -  BASF and Poncho Votivo announced a partnership with the Field of Dreams Movie Site, a famous cornfield in the U.S. With broad spectrum insect control and strong nematode protection, Poncho Votivo delivers higher yields.


• May 2022 – Syngenta launched new seed treatment product, VICTRATO. The new product helps to control nematode and soil-borne fungal diseases, increasing the quality and yield of many crops, including soybeans, corn, cereals, cotton, and rice.


• October 2021 - UPL Ltd., a global supplier of sustainable agriculture products and solutions, launched a technology-driven seed treatment solution Electron 3-WM (3 Way Mix), in the seed and plant health segment. The product is economical as it reduces the need for foliar applications in the early phase of the plant cycle, leading to decline in the cost of production.


• March 2021 - Syngenta introduced a new corn seed treatment, Vayantis fungicide. The product contains the active ingredient picarbutrazox, a fungicide treatment developed to protect seedlings from key blight and damping-off diseases. This new product launch will help farmers to combat Pythium, a fungi, and protect their crops.


• October 2020 - BASF strengthened its soybean seed treatment portfolio by introducing three new products, Vault IP Plus, Poncho XC, and Relenya. The new product launch offers soybean farmers protection against insects and diseases.


• May 2020 – BASF launched Melyra fungicide to customers in China. It is the first in the series of three planned new products for the Chinese market based on the company's fungicide Revysol.

REPORT COVERAGE

The research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product sources, and leading end-use applications. Besides this, the report offers insights into the seed treatment market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the market's growth in recent years.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 12.54% over 2024 to 2032
Unit	Value (USD billion)
Segmentation	By Type Synthetic Chemicals Biologicals By Function Seed Protection Seed Enhancement By Application Technique Seed Dressing Seed Coating Seed Pelleting By Stage of Seed On-farm Off-Farm By Crop Type Cereals Oilseeds Fruits & Vegetables Others  By Geography North America (By Type, Function, Application Technique, Stage of Seed, Crop Type, and Country) U.S. (By Type) Canada (By Type) Mexico (By Type) Europe (By Type, Function, Application Technique, Stage of Seed, Crop Type, and Country) Germany (By Type) France (By Type) Italy (By Type) Spain (By Type) U.K. (By Type) Rest of Europe (By Type) Asia Pacific (By Type, Function, Application Technique, Stage of Seed, Crop Type, and Country) China (By Type) India (By Type) Japan (By Type) Australia (By Type) Rest of Asia Pacific (By Type) South America (By Type, Function, Application Technique, Stage of Seed, Crop Type, and Country) Brazil (By Type) Argentina (By Type) Rest of South America (By Type) Middle East and Africa (By Type, Function, Application Technique, Stage of Seed, Crop Type, and Country) Egypt (By Type) South Africa (By Type) Rest of ME&A (By Type)